Williams Q3 2026 Earnings: Service Revenue Growth Lifts Adjusted EBITDA

Williams (NYSE: WMB) reported Q3 2026 revenue of $3.223 billion, up approximately 10% from $2.923 billion a year earlier, while diluted EPS increased 6% to $0.56 from $0.53. For the quarter ended September 30, adjusted EBITDA rose 6% as new power-generation revenue, the Momentum Midstream acquisition, projects entering service, and higher storage revenue outweighed lower upstream contributions and higher expenses.

Core Earnings Data

Service revenue increased by $198 million to $2.319 billion, providing the main operating contribution to revenue growth. Product sales also rose, although commodity derivative gains declined to $2 million from $56 million.

GAAP net income benefited from an $83 million gain on the sale of a Permian gathering system. Offsetting factors included reduced upstream results, higher operating and administrative expenses, $63 million of acquisition and joint-venture formation costs, and unfavorable changes in unrealized commodity derivative gains and losses.

Net income figures represent continuing operations attributable to Williams and available to common stockholders. Adjusted EPS, adjusted EBITDA, and available funds from operations are non-GAAP measures.

Business and Segment Performance

Transmission, Power & Gulf remained the largest contributor to adjusted EBITDA, while Northeast G&P and West also posted year-over-year growth. Gas & NGL Marketing Services and Other declined, partly offsetting the three primary operating segments.

Transmission, Power & Gulf benefited from new power-generation revenue, recently completed projects, and higher storage revenue, partially offset by higher operating and administrative expenses. Williams also expanded pipeline capacity by 413 MMcf/d across four projects during the quarter.

Northeast G&P was supported by higher Ohio Valley Midstream volumes and increased proportional EBITDA from equity-method investments. West benefited from the Momentum acquisition and Louisiana Energy Gateway, which entered service in Q3 2025. The decline in Other reflected the absence of the South Mansfield upstream interests sold in January 2026.

Revenue Growth Outpaced Operating Profit as Costs Rose

Revenue increased by approximately 10%, but operating income rose only 2%, reducing the calculated operating margin by about 2.7 percentage points. Product costs increased to $618 million from $471 million, operating and maintenance expenses rose to $639 million from $583 million, and general and administrative expenses increased to $275 million from $168 million.

The $83 million asset-sale gain provided support to GAAP operating income, while adjusted EBITDA still grew 6% after excluding asset-sale gains, acquisition costs, and unrealized derivative effects. This indicates that service revenue growth translated into higher adjusted earnings, but rising operating and administrative costs limited overall operating leverage.

Cash Flow, Capital Spending, and Leverage

Operating cash flow increased because of higher operating results excluding noncash items and larger distributions from equity-method investments. Unfavorable working-capital changes and derivative collateral requirements partially offset those benefits. AFFO dividend coverage improved to 2.42 times from 2.37 times.

Capital investments excluding acquisitions rose to $2.727 billion from $1.053 billion. That figure excludes the $2.816 billion Momentum acquisition completed in September, as well as certain reimbursable long-lead power equipment.

At September 30, Williams held $1.756 billion of cash and cash equivalents, compared with $63 million at the end of 2025. Long-term debt increased to $31.732 billion from $27.316 billion, while debt due within one year rose to $2.202 billion from $1.345 billion. The quarter-end debt-to-adjusted EBITDA ratio was 3.80 times, compared with 3.73 times a year earlier.

2026 Guidance

Williams maintained its 2026 adjusted EBITDA and growth capital expenditure ranges. Management said performance was tracking toward the upper half of the adjusted EBITDA range, while the stated leverage midpoint remains slightly below the quarter-end ratio.

The growth capital and leverage guidance excludes certain reimbursable long-lead equipment.

Management’s View

CEO Chad Zamarin attributed the year-to-date performance to natural gas transmission, storage, and gathering operations. Management maintained confidence in its target of more than 11% compound annual adjusted EBITDA growth through 2030, supported by projects entering service and demand from LNG, power generation, and industrial customers.

Williams highlighted the early execution of the Socrates project and said the Plato North power project remained on track to enter service by mid-November. The company also announced a 9.4 Bcf expansion at Clay Basin, additional Transco projects, and increased capacity for the Garden Connector project.

Recent Insider Transactions

The supplied insider data reports 28,369 shares purchased across six transactions and 87,500 shares sold across nine transactions during the latest six-month period, resulting in net sales of 59,131 shares. The transactions below are reported amounts and do not by themselves indicate insiders’ views about Williams’ outlook.

Risks Investors Should Watch

• Expense growth: Operating, maintenance, and administrative costs rose faster than operating income. Continued cost growth could keep revenue gains from translating fully into higher margins.
• Capital intensity and leverage: Capital investments increased materially, the Momentum acquisition required $2.816 billion, and quarter-end leverage rose to 3.80 times. Williams must balance its project pipeline with its leverage framework.
• Project and acquisition execution: Expected growth increasingly relies on integrating Momentum and placing power, storage, and pipeline projects into service on schedule.
• GAAP earnings variability: The quarter included an $83 million asset-sale gain and unfavorable unrealized commodity derivative changes. These items can create differences between GAAP net income and underlying operating performance.

Summary

Williams’ Q3 2026 results reflected higher service revenue from power generation, storage, completed projects, and the Momentum acquisition. Adjusted EBITDA, EPS, and cash flow increased, but operating income grew more slowly than revenue as costs rose. The next points to monitor are project execution, Momentum’s ongoing contribution, expense control, and whether full-year adjusted EBITDA finishes in the upper half of the maintained guidance range.